If anything, this only proves the authors of the study right, as in development aid should be re-prioritized to fulfill urban-like needs (i.e. helping build a courthouse and paying the adjacent salaries) instead of continuing pumping money into things like agriculture, pretending that those 100,000 people are in the majority agricultural workers.
Well, local "specific country policies for cities and population density and infrastructure" shouldn't matter.
We should pick one definition and stick to it, not just consider an 1M people place a "village" just because some country calls its so.
What interests us is how many cities etc there are population wise -- not name-wise. Whether they're called "cities" locally is irrelevant if they still function as such for our criteria.